Changes on the Table for the Insurance (Prudential Supervision) Bill

The Insurance (Prudential Supervision) Bill has been reported back to New Zealand Parliament from the Finance and Expenditure Committee with a number of recommended changes. The Committee recommends that discretionary funds be exempted from the Bill, but overseas associations of persons who are insurers be added.

They have also attempted to clarify when an overseas insurer/reinsurer is subject to the Bill, but doubts remain.

We set out below a summary of the more important changes.

Definition of 'contract of insurance

The Committee proposes to delete the express inclusion of discretionary funds in the definition of 'contact of insurance'. Thus, organisations providing discretionary payments to their members upon the happening of uncertain events do not need to be licensed.